The Indian Banks' Association (IBA) is in the process of putting in place a Business Correspondents registry and is taking forward the process of BC certification.

This registry, according to RBI's latest report on Trends and Progress of Banking in India - 2016-17 would capture information on both existing and potential BCs and help in effective monitoring and oversight of BC operations. The RBI, the report noted, has developed a framework for the BC registry and BC certification, with basic and advanced level courses to enhance their functional and behavioural competencies. Such initiatives are expected to further strengthen the BC ecosystem through appropriate policy initiatives.

Considering that BCs play a crucial role in initiating first-time customers into mainstream banking, proper guidance and handholding would be the key to such customers continuing and deepening their relationship with the banking system. The dominance of BCs, particularly in rural areas, has now become visible. As at end March 2017, about 91 per cent of the banking outlets in villages were BCs, as against 50.5 per cent in March 2010. Further, given that BCs which provide banking services over a minimum of four hours a day and at least five days a week are recognised as banking outlets, their importance is set to increase further.

BCs have, with the use of ICT (Information and Communication Technology), conducted 1,159 million transactions during the 12-month period ending March 2017, up 40 per cent from the year-ago volume of 827 million transactions amounting to Rs 2,652 billion (Rs 1,687 billion). During the first half of the current fiscal, the transaction volumes have surged to Rs 662 million, amounting to Rs 1,831 billion.

Related Topics